Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators

Absolute advantage is determined by comparing the opportunity costs of producing each good in different countries

a. True b. False Indicate whether the statement is true or false

Your grandfather tells you that he earned $.50 per hour at his job when he was a boy in 1929

a. Given that the CPI was 17.1 in 1929 and 184.0 in 2003, how much would you have to make in 2003 to have the same real hourly wage? b. You made $5.50 an hour working during 2003 . Were you better off than your grandfather in terms of purchasing power? Explain. c. Your grandfather also tells you that a soda cost $.05 in 1929, and you know a soda cost $.55 in 2003 . You decide to use the price of a soda as the price index. How much would the 2003 "soda equivalent" of $.50 per hour in 1929 be?